After taking on the investment of a PE house or large firm, CFOs and finance leaders often believe a move to the big four will be an inevitability. Part of the agreement perhaps.
In reality, audit quality and outcomes far outweigh the clout of a name above the door.
What matters is…
- Confidence in the numbers
- A robust audit process
- Reliable reporting
- No surprises through diligence, refinancing or exit
That’s why continuity of team, predictable fees and a clearly agreed audit timetable become even more important post investment.
Cooper Parry is a PE backed business, we have first-hand experience in what it takes to meet investor expectations and guide many clients through this journey too.
Might a change in accountant be necessary? Yes. Are the big four the answer? We think not!
Here’s why:
1. Larger firms can mean slower decisions and more rigid audit processes
Larger accounting firms are built for scale and consistency and whilst this has its place, it can create friction.
Finance leaders often experience slow decision making driven by multiple layers of internal escalation, rigid audit methodologies applied regardless of risk, and issues being raised late in the process. These challenges can add pressure at year end and reduce confidence in delivery.
Accountants who specialise in PE backed businesses apply judgement earlier, focus on genuine risk areas and tailor their audit approach to the business – reducing disruption without compromising audit quality.
2. Being a smaller client in a very large firm creates delivery risk
A frequent frustration is the feeling of being a small client in a firm focused on much larger, higher fee engagements.
This can result in limited partner availability, lack of continuity in the audit team, difficulty securing firm commitments on timelines and, ultimately, missed deadlines or timetable uncertainty.
When you’re investor backed, reporting deadlines are non-negotiable and this lack of prioritisation can quickly become a risk. Selecting a firm that combines expertise with building strong relationships can save a lot of headaches.
At Cooper Parry, the mid-market is our home turf, and our audit model is commercial, pragmatic, and built around the needs of businesses like yours.
3. Sector expertise needs to sit with the audit team, not just the lead partner
Sector experience is often cited as a reason to change accountant after investment. However, finance leaders frequently find that this expertise sits primarily with the lead partner, rather than the team carrying out the audit work.
When sector understanding isn’t embedded throughout the audit team, it can lead to inefficiency, excessive testing, repeated explanations and missed nuances in the business model. By contrast, accountants who regularly audit businesses of a similar size, structure and sector tend to embed that knowledge across the whole team, improving efficiency and audit quality in tandem.
4. Continuity, fee predictability and timetable certainty matter more after investment
Private equity ownership increases scrutiny and pace. At the same time, many finance leaders experience rising audit fees without clear explanation, frequent changes in audit staff and growing uncertainty around delivery timetables.
These issues are rarely driven by the business itself. More often, they reflect stretched resources and shifting priorities within larger firms.
For investment backed businesses, continuity of team, predictable fees and a clearly agreed audit timetable become even more important post investment. An accountant who deeply understands the business can significantly reduce execution risk during this critical phase.
Put outcomes above assumptions
Taking on private equity investment does not automatically mean you need to make a move to the big four. Before making any decision, it’s worth stepping back and considering whether that change is genuinely required – or simply assumed.
Focus on working with an accountant that is delivering audit quality, certainty, sector understanding and a proportionate approach.
Perhaps you’re considering your options…
We’re a PE backed business ourselves and work with a large number of investment backed businesses and finance leaders navigating that world.
Whether you’re reviewing your current audit arrangement, benchmarking service and fees, or simply want a sense check on what investors actually require, a conversation will give you a lot of clarity.
If you’d like to explore this further, get in touch with me here.
